Does network building improve sales performance? The stabilizing role of job embeddedness
Journal of Organizational Effectiveness: People and Performance
ISSN: 2051-6614
Article publication date: 1 June 2015
Abstract
Purpose
The purpose of this paper is to combine the concepts of network building (NB) and job embeddedness (JE; both on-the-job and off-the-job embeddedness (ON and OFF)) and examines how to improve sales performance (SP) by effectively stabilizing the sales force.
Design/methodology/approach
Sales practices were examined to establish the measures of overall sales performance. A factor analysis was conducted to extract two performance dimensions: customer relationship performance (CRP) and product selling performance (PSP). Structural equation modeling was employed to test the hypothesized model by analyzing survey data collected from 445 salespeople who work for the top five insurance firms in Taiwan.
Findings
The results show that the NB of salespeople has a direct positive effect on ON and OFF; JE plays a critical role in mediating the relationship between NB and SP; and NB contributes directly only to CRP. However, it does not have a positive effect on PSP until JE is introduced as a mediator to generate CRP.
Practical implications
In developing the NB of salespeople, managers should be provided with clear indicators about on-the-job and off-the-job-embeddedness for manpower stability. Moreover, in addition to seeking product sales, managers should direct salespeople to embed in sales work by providing performance measures involving customer relationship.
Originality/value
This study highlights the need for a viable and integrated model of sales performance. The results indicate that the career achievement of field service employees relies primarily on whether they could effectively build social relationships. Theoretically, this investigation introduces NB into the JE theory, clarifies the relationship among NB, JE, and SP, and proposes a superior mechanism (CRP) for improving sales performance in the financial and insurance industries. Moreover, this study provides additional support for the relationship between ON and OFF.
Keywords
Citation
Cheng, C.-Y. and Chang, J.-N. (2015), "Does network building improve sales performance? The stabilizing role of job embeddedness", Journal of Organizational Effectiveness: People and Performance, Vol. 2 No. 2, pp. 110-133. https://doi.org/10.1108/JOEPP-08-2014-0052
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited